GE Delivers Record Financial Performance in Fourth Quarter 2004, With 18% Revenue Growth, 18% Earnings Growth and $.51 EPS; Full-Year Cash Flow Increases 18% to $15.2 Billion.FAIRFIELD, Conn. -- GE achieved record fourth-quarter revenues of $43.7 billion, up 18% from fourth quarter 2003, and record fourth-quarter earnings of $5.4 billion, also up 18%, the company announced today. Full-year 2004 earnings were $16.6 billion, up 6% from 2003 earnings before required accounting changes. Cash flow from GE's operating activities (CFOA CFOA Chief Fire Officers’ Association (UK Office of the Deputy Prime Minister Fire and Rescue National Framework) CFOA Cash Flow from Operating Activities CFOA Chief Financial Officer's Act of 1990 ) in 2004 increased 18% to $15.2 billion. "GE had a tremendous fourth quarter and an excellent 2004, as we completed our strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. and returned to double-digit earnings growth in the quarter," said GE Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jeff Immelt. "In the fourth quarter, nine of our 11 businesses delivered double-digit earnings growth. Industrial sales grew 19%, and our key financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. businesses ended the year with assets up 20% and improved overall portfolio quality. Total orders for the quarter increased 15% over last year, with growth across the board. We are benefiting from strong execution of our growth initiatives and an excellent global economy. "For the year, nine of our 11 businesses delivered at least double-digit earnings growth and we increased CFOA to $15.2 billion. We made major progress on our portfolio, exceeding our synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. goals for the Amersham and Universal acquisitions, adding capabilities to our water, security and key financial services units, and executing several dispositions, including the initial public offering of Genworth and the sale of 60% of Gecis, our global business processing operation. Revenues from our growth initiatives -- in services and our new platforms, such as security and water -- grew 12% and 17% respectively, and global revenues increased 16%. "As a result, we're going into 2005 with excellent momentum," Immelt said. "We are very confident about achieving 10-15% earnings growth with strong cash flow growth and sustaining this growth into 2006 as well." GE will discuss preliminary fourth-quarter and full-year results on a conference call and Webcast to be held at 8:30 a.m. ET today. Call information is available at www.ge.com/investor, and related charts will be posted there prior to the call. Highlights of preliminary fourth-quarter and full-year 2004 results: --Fourth-quarter earnings were a record $5.378 billion, up 18% from $4.560 billion in fourth quarter 2003. Earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) were $.51, up 13% from last year's $.45. Nine of GE's 11 businesses - Advanced Materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, , Commercial Finance, Consumer Finance, Consumer & Industrial, Equipment & Other Services, Healthcare, Infrastructure, NBC Universal NBC Universal is a media and entertainment company formed in May 2004 by the combination of General Electric's NBC with Vivendi Universal Entertainment (part of the French Media Group, Vivendi SA). GE owns 80% of NBC Universal with the remaining 20% owned by Vivendi SA. and Transportation - contributed double-digit earnings growth. Earnings of the Insurance segment declined as a result of increases in loss reserves for policies written in prior years and the disposition of several businesses. --Fourth-quarter revenues were a record $43.7 billion, up 18% over $37.0 billion in fourth quarter 2003. Industrial sales increased 19% to $24.6 billion, reflecting the impact of acquisitions, solid core growth and lower sales at GE Energy. Financial services revenues rose 16% over last year to $19.2 billion. --Full-year 2004 earnings were a record $16.6 billion, up 6% from $15.6 billion before required accounting changes in 2003, with EPS of $1.59 up 3% from last year's comparable $1.55. Nine of GE's 11 businesses contributed at least double-digit earnings growth for the year. Net earnings for 2004 of $16.6 billion were 11% higher than $15.0 billion in 2003, which reflected charges of $587 million ($.06 per share) for the cumulative effects of required accounting changes to consolidate special purpose entities and to record asset retirement obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. . Net 2004 EPS of $1.59 were up 7% from $1.49 last year. --Full-year revenues grew 14% to $152.4 billion. Industrial sales rose 17% to $82.2 billion, reflecting the impact of acquisitions, solid core growth and lower sales at GE Energy. Financial services revenues increased 10% to $70.8 billion, including the effects of exiting certain Insurance businesses. --Cash generated from GE's operating activities in 2004 totaled $15.2 billion, up 18% from $12.9 billion last year, reflecting a 27% increase in CFOA from industrial businesses and lower GE Capital Services dividends, due principally to lower proceeds from business dispositions. "GE is in great shape," Immelt said. "We've got great businesses positioned in the right markets with very strong teams driving powerful initiatives. With a great pipeline of technology, billions in contractual services agreements, a rigorous focus on customers and the ability to deliver all of this globally, we are now focused on driving strong organic growth and delivering consistent double-digit growth in earnings and cash flow, with expanding returns on capital. "This is a great time for GE." Fourth Quarter 2004 Business Highlights Transportation --Received $3.6 billion of new aircraft engine services contracts from customers including Ryanair, Emirates and Alaska Airlines Alaska Airlines, (NYSE: ALK) is an airline based in Seattle, Washington, United States. It operates hubs at Seattle-Tacoma International Airport, Ted Stevens Anchorage International Airport, Los Angeles International Airport, and Portland International Airport. , and locomotive locomotive, vehicle used to pull a train of unpowered railroad cars. Types of Locomotives The steam-powered locomotive played a key role during the development and golden age of railroading, but, despite its long and picturesque history, it has services agreements worth more than $0.4 billion, including the first GE Evolution Series(TM) services contracts. --Received commercial aircraft engine orders totaling $0.6 billion from customers including Embraer, Bombardier and Lufthansa. --Received $1.1 billion in Rail orders, including orders for 231 locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
--Completed more than 4.5 million miles of cumulative active field service for Evolution Series pre-production units, with availability at 97%; completed preparations and commenced full commercial production in January 2005, with a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of more than 1,200 units for multi-year delivery. --Launched the Engine Exchange program for the CFM (Cubic Feet per Minute) The measurement of air flow. Cooling fans are rated in CFM. 56-3 aircraft engine under which Transportation provides "loaner" engines to customers while servicing their own. --Completed the first site implementation, at Norfolk Southern Railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. , of Rail's Precision Dispatch A dispatch or dispatches can refer to:
Healthcare --Increased total orders 25% over fourth quarter 2003 to $4.4 billion, driven by 9% growth in services, 15% growth in ultrasound ultrasound or sonography, in medicine, technique that uses sound waves to study and treat hard-to-reach body areas. In scanning with ultrasound, high-frequency sound waves are transmitted to the area of interest and the returning echoes recorded and $0.8 billion in Biosciences. --Received strong orders for new products, including the Volume CT (computed tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. ) scanner (1) See also antivirus program. (2) An optical device that reads a printed page or transparency and converts it into a graphics image for the computer. The scanner does not recognize or differentiate in any manner the content of the material it is scanning. , the 3T MR (magnetic resonance magnetic resonance, in physics and chemistry, phenomenon produced by simultaneously applying a steady magnetic field and electromagnetic radiation (usually radio waves) to a sample of atoms and then adjusting the frequency of the radiation and the strength of the ) scanner, and the Vivid I(TM) portable ultrasound. --Signed a $200 million-plus agreement in the U.K. with Fujitsu Services Ltd., to provide Picture Archiving and Communication System In medical imaging, picture archiving and communication systems (PACS) are computers or networks dedicated to the storage, retrieval, distribution and presentation of images. The medical images are stored in an independent format. (PACS (Picture ArChiving System) A storage and management system for high-resolution images. Typically pertaining to the medical field, images such as X-rays, MRIs and CAT scans require a greater amount of storage than other industries. ) technology that will enable the conversion of hospitals and clinics to a new digital system for storing, retrieving and displaying patients' medical images. --Launched HDMR, the world's first high-definition magnetic resonance (MR) system, which provides unprecedented image clarity for patients such as Parkinson's sufferers. --Received FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval for InSightec's ExAblate 2000, which combines GE's MR imaging with focused ultrasound to provide non-invasive Non-invasive A procedure that does not penetrate the body. Mentioned in: Multiple-Gated Acquisition Scan non-invasive 1. not penetrating the skin, e.g. a non-invasive test. 2. treatment of uterine fibroids Uterine Fibroids Definition Uterine fibroids (also called leiomyomas or myomas) are benign growths of the muscle inside the uterus. They are not cancerous, nor are they related to cancer. (GE is an equity shareholder in InSightec). --Launched LOGIQBook XP, a 10-lb., full-featured, easy-to-use ultrasound system with advanced connectivity that enables clinicians to scan patients virtually anywhere -- even in trauma and surgical settings. Energy --Signed new contractual service agreements totaling $1.1 billion, increasing the number of gas turbines covered by 8% and the number of sites by 4% since the end of 2003. --Increased orders for oil and gas equipment 34% to $1.5 billion, including a $95 million contract for turbines, generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. and compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve equipment for the latest expansion of the RasGas (II) facility owned by Ras Laffan Liquefied Natural Gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. Company Ltd. in the State of Qatar. --Shipped 316 wind turbines in the quarter and received orders for 1,243 1.5-megawatt wind turbines, including the final 100 of a 207-turbine order from MidAmerican Energy Company MidAmerican Energy Company is an energy company in the U.S. state of Iowa. MidAmerican Energy Company is a subsidiary of MidAmerican Energy Holdings Company. See also
--Signed a letter of intent with Calpine Corporation for the joint construction of a power plant based on the 60-Hz H System(TM), GE's most advanced gas turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. technology. --Signed a letter of intent with Cinergy/PSI and Bechtel Corporation to study the feasibility of constructing a commercial Cleaner Coal(TM) generating station. --Received global equipment orders to supply a 1,135-megawatt combined-cycle power plant in Mexico, the first installation of GE's advanced gas turbine technology in Egypt, and hydroelectric equipment for three facilities in China. --Shipped 28 heavy-duty gas turbines from Greenville, S.C., and Belfort, France in the quarter compared with 35 in fourth quarter 2003. Commercial Finance --Expanded its transportation finance capabilities with an agreement to acquire $4.2 billion in assets from CitiCapital's Transportation Financial Services Group, serving about 49,000 customers across the U.S. and Canada and financing approximately 196,000 heavy- and medium-duty commercial trucks and trailers. --Through CCE CCE Cornell Cooperative Extension CCE Corporate and Continuing Education CCE Coca-Cola Enterprises Inc. CCE Commission de Coopération Environnementale CCE Centre for Continuing Education CCE College of Continuing Education CCE Certified Computer Examiner Holdings, a joint venture with Southern Union, completed the $2.4 billion acquisition of CrossCountry Energy, the holding company formed from Enron's remaining U.S. gas pipelines. --Completed a global vendor financing Vendor Financing The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products. agreement with Eastman Kodak Company's Health Imaging Group, through which the manufacturer will offer its customers a full range of GE equipment financing options, including operating and capital leases, loans and customized financing programs. --Signed an agreement for the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of NMB-Heller, its working-capital finance joint venture with ING, under which Commercial Finance will buy ING's 50% stake in Heller GmbH, NMB-Heller's German unit, broadening its range of financing solutions for German customers and increasing its presence in that country. Consumer Finance --Completed the acquisition of Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. Financial Investments Group (including the Wizard Instructional help in an application or system development environment that guides the user through a series of multiple choice questions to accomplish a task. For the most part, wizards are more effective than the help menus found in most applications, which often border on the atrocious. Home Loans brand and distribution network), strengthening GE's presence in the Australian mortgage industry. --Completed the purchase of substantially all the assets of Dillard's National Bank, including its private label credit card business, comprising the sixth-largest in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. private label credit card program in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and adding 5.5 million active card members to Consumer Finance's customer base. --Teamed with SAM'S CLUB Sam's Club is a membership-only warehouse club owned and operated by Wal-Mart Stores, Inc. History The first Sam's Club opened in April 1983 in Midwest City, Oklahoma in the United States.[1] Sam's Club is named after Sam Walton. to launch the new Business All-In-One Card for SAM'S CLUB Business Members and Business Plus Members throughout the United States. --Launched Kawasaki Motors Retail Finance with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Kawasaki Motors, which will allow Kawasaki dealers in Canada to offer consumers special credit promotions and long-term financing Long-term financing Liabilities repayable in more than one year plus equity. for motorcycles, ATVs, utility vehicles and personal watercraft personal watercraft n. 1. A motorized recreational water vehicle normally ridden by straddling a seat. 2. (used with a pl. verb) Such water vehicles considered as a group. . --Signed a multi-year agreement to extend its retail credit card program with The Men's Wearhouse Men's Wearhouse (NYSE: MW) is the largest men's dress apparel retailer in the United States. The company is based in Houston, Texas, and is publicly traded on the New York Stock Exchange. The company was founded by George Zimmer in 1973. , representing nearly 700,000 cardholders. NBC Universal --Garnered a domestic box office total of $225 million in the first four weeks of theatrical release with Universal Pictures' Meet the Fockers, surpassing the entire box office gross of its predecessor, Meet the Parents, by 40%. --Generated $72 million at the domestic box office for Ray, which received a Golden Globe nomination for Best Picture and the Golden Globe award for Best Actor. --Launched Joey Joey after Joseph Grimaldi, famous 19th-century clown. [Am. Hist.: Espy, 45] See : Clowns , the quarter's top-ranking new comedy in the key demographic of adults 18-49; continued NBC's late-night leadership, with Jay Leno Jay Leno (born April 28, 1950) is an Emmy-winning American comedian, writer who is best known as the current host of NBC television's long-running variety and talk program The Tonight Show. Biography Leno was born in New Rochelle, New York. and Conan O'Brien Conan Christopher O'Brien (born April 18, 1963)[1] is an Emmy-winning American comedian, writer and television personality best known as host of NBC's late-night talk/variety show Late Night with Conan O'Brien. leading their respective competitors among adults 18-49 by 25% and 57% respectively. --Completed the year with Bravo BRAVO Cardiology A clinical trial–Blockade of the GP IIB/IIIA Receptor to Avoid Vascular Occlusion– which evaluated lotrafiban in preventing strokes and acute MI. See GP IIB/IIIA. ranking as the basic cable entertainment network with the highest concentration of affluent viewers, and with Telemundo ranking as the fastest-growing network for U.S. Hispanics in primetime among adults 18-49. --Shipped 70 million DVDs and VHS (Video Home System) A half-inch, analog videocassette recorder (VCR) format introduced by JVC in 1976 to compete with Sony's Betamax, introduced a year earlier. units in the quarter, led by the strength of Van Helsing, The Chronicles Chronicles, two books of the Bible, originally a single work in the Hebrew canon (the final book of that canon), called First and Second Chronicles in the Authorized Version, and called First and Second Paralipomenon in the Septuagint and in the Vulgate. of Riddick and The Bourne Bourne, town (1990 pop. 16,064), Barnstable co., SE Mass., crossed by Cape Cod Canal; settled 1627, inc. 1884. Bourne Bridge (1935), across the canal, made the town an entry point to Cape Cod and a resort and commercial center. Supremacy SUPREMACY. Sovereign dominion, authority, and preeminence; the highest state. In the United States, the supremacy resides in the people, and is exercises by their constitutional representatives, the president and congress. Vide Sovereignty. . --Launched NBC Weather Plus NBC Weather Plus is a 24-hour weather-oriented broadcast/cable television network jointly owned by NBC Universal and its broadcast affiliates of NBC. It debuted on November 15 2004 and is the first-ever 24/7, all-digital national-local broadcast network. , the nation's first all-digital broadcast network, which provides local weather, news and information around the clock. Infrastructure --Announced two strategic acquisitions -- Ionics, a global leader in desalination desalination or desalting Removal of dissolved salts from seawater and from the salty waters of inland seas, highly mineralized groundwaters, and municipal wastewaters. , and Edwards Systems Technology's fire detection systems business -- and completed a third, InVision Technologies InVision Technologies, Inc. was a publicly traded company based in Newark, California, that manufactured and sold airport security screening devices to detect explosives in passenger baggage. One of its most well-known products is the CTX explosive-detection device. , positioning Infrastructure for growth in the water and security industries. --Received certification from the U.S. Transportation Security Administration of its X-ray X-ray Electromagnetic radiation of extremely short wavelength (100 nanometres to 0.001 nanometre) produced by the deceleration of charged particles or the transitions of electrons in atoms. diffraction (XRD XRD X-Ray Diffraction XRD Crossroad XRD X-Ray Diode ) system for identifying the chemical signatures of explosives on passenger-checked baggage, the first new technology certified See certification. by the TSA TSA See tax-sheltered annuity (TSA). since 1994. --Successfully completed commercial testing for its tamper-evident sea container cargo-security system, which uses RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. (radio frequency identification See RFID. ) wireless technology embedded Inserted into. See embedded system. in a container's walls to determine if it has been breached during transport. --Announced a strategic partnership with China Telecom, the leading company in the world's largest telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market, to create a new generation of advanced home security technology that will allow residents of China to communicate with their homes through the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and cellular phones. Advanced Materials --Announced with Goodyear the new Assurance(R) tire, with all-weather performance characteristics based on GE's NXT NXT Next (TM) silane silane or silicon hydride Any of a series of inorganic compounds of silicon and hydrogen with covalent bonds and the general chemical formula SinH(2n + 2). , a liquid coupling agent developed by GE scientists. --Introduced AZDEL(TM) Rail-Lite(TM), a breakthrough flame-retardant, high-strength composite material composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the using GE's advanced Ultem(TM) resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing , and announced a joint development agreement with China Railway Long Dragon dragon, mythical beast usually represented as a huge, winged, fire-breathing reptile. For centuries the dragon has been prominent in the folklore of many peoples; thus, its physical characteristics vary greatly and include combinations of numerous animals. New Composite Materials Co., Ltd. to co-develop AZDEL-based components for passenger train interiors as part of China's refurbishing of its national railway system for the 2008 Olympics Olympics Sports medicine An international competition among (traditionally) nonprofessional athletes trained in a particular summer or winter sport, which is held every 4 yrs in a selected city. See Paralympics, Special Olympics, World Medical Games. . Consumer & Industrial --Drove higher sales in the quarter with leadership from new Profile(R) appliance launches, energy-saving Ultra(TM) fluorescent lamps fluorescent lamp Type of electric discharge lamp consisting of a glass tube filled with a mixture of argon and mercury vapor. A current of electricity causes the vapor to produce ultraviolet radiation that, in turn, excites a phosphor coating on the inside of the tube, , new Ultramax(TM) and ProLine proline (prō`lēn), organic compound, one of the 20 amino acids commonly found in animal proteins. Only the l-stereoisomer appears in mammalian protein. (TM) electronic ballast bal·last n. 1. Heavy material that is placed in the hold of a ship or the gondola of a balloon to enhance stability. 2. a. Coarse gravel or crushed rock laid to form a bed for roads or railroads. b. products, improved market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" by Reveal(R) light bulbs and the global strength of industrial product sales. --Completed the disposition of its Heating, Ventilation ventilation, process of supplying fresh air to an enclosed space and removing from it air contaminated by odors, gases, or smoke. Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and and Air Conditioning/Refrigeration Motor and Capacitor capacitor or condenser, device for the storage of electric charge. Simple capacitors consist of two plates made of an electrically conducting material (e.g., a metal) and separated by a nonconducting material or dielectric (e.g. operations to Regal-Beloit Corporation for $380 million. GE (NYSE NYSE See: New York Stock Exchange : GE) is a diversified diversified (di·verˑ·s technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com. Caution Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from the behavior of financial markets, including fluctuations in interest rates and commodity prices, from future integration of acquired businesses, from future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation and healthcare industries, from unanticipated loss development in our insurance businesses, and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Consolidated
------------------------
Fourth quarters ended December 31 2004 2003 V%
------------------------------------------- --------- --------- ----
Revenues
Sales of goods and services $25,334 $21,144
Earnings of GECS - -
GECS revenues from services 17,959 15,627
Other income 413 193
--------- ---------
Total revenues 43,706 36,964 18%
--------- ---------
Costs and expenses
Cost of sales, operating and administrative
expenses 28,277 23,612
Interest and other financial charges 3,404 2,823
Insurance losses and policyholder and
annuity benefits 4,437 3,960
Provision for losses on financing
receivables 1,144 953
Minority interest in net earnings of
consolidated affiliates 389 91
--------- ---------
Total costs and expenses 37,651 31,439 20%
--------- ---------
Earnings before income taxes 6,055 5,525
Provision for income taxes (677) (965)
--------- ---------
Net earnings $5,378 $4,560 18%
========= =========
Per-share amounts
Diluted earnings per share $0.51 $0.45 13%
Diluted number of shares 10,626 10,105
Basic earnings per share $0.51 $0.45 13%
Basic number of shares 10,580 10,053
Dividends declared per share $0.22 $0.20
Financial Services
GE (GECS)
------------------------ ------------------------
Fourth quarters
ended December 31 2004 2003 V% 2004 2003 V%
------------------ --------- --------- ---- --------- --------- ----
Revenues
Sales of goods and
services $24,572 $20,581 $830 $646
Earnings of GECS 2,387 2,275 - -
GECS revenues from
services - - 18,321 15,872
Other income 416 187 - -
--------- --------- --------- ---------
Total revenues 27,375 23,043 19% 19,151 16,518 16%
--------- --------- --------- ---------
Costs and expenses
Cost of sales,
operating and
administrative
expenses 20,813 17,388 7,720 6,425
Interest and other
financial charges 336 236 3,180 2,708
Insurance losses and
policyholder and
annuity benefits - - 4,502 3,960
Provision for losses
on financing
receivables - - 1,144 953
Minority interest in
net earnings of
consolidated
affiliates 247 58 142 33
--------- --------- --------- ---------
Total costs and
expenses 21,396 17,682 21% 16,688 14,079 19%
--------- --------- --------- ---------
Earnings before
income taxes 5,979 5,361 2,463 2,439
Provision for income
taxes (601) (801) (76) (164)
--------- --------- --------- ---------
Net earnings $5,378 $4,560 18% $2,387 $2,275 5%
========= ========= ========= =========
Dollar amounts and share amounts in millions; per-share amounts in
dollars; unaudited. Supplemental consolidating data are shown for "GE"
and "Financial Services (GECS)." Transactions between GE and GECS have
been eliminated from the "consolidated" columns. See note 1 to the
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
Consolidated
------------------------
Years ended December 31 2004 2003 V%
------------------------------------------- --------- --------- ----
Revenues
Sales of goods and services $84,706 $72,354
Earnings of GECS before accounting changes - -
GECS revenues from services 66,594 61,231
Other income 1,063 602
--------- ---------
Total revenues 152,363 134,187 14%
--------- ---------
Costs and expenses
Cost of sales, operating and administrative
expenses 99,907 83,027
Interest and other financial charges 11,907 10,825
Insurance losses and policyholder and
annuity benefits 15,627 16,369
Provision for losses on financing
receivables 3,888 3,752
Minority interest in net earnings of
consolidated affiliates 928 310
--------- ---------
Total costs and expenses 132,257 114,283 16%
--------- ---------
Earnings before income taxes and accounting
changes 20,106 19,904
Provision for income taxes (3,513) (4,315)
--------- ---------
Earnings before accounting changes $16,593 $15,589 6%
Cumulative effect of accounting changes - (587)
--------- ---------
Net earnings $16,593 $15,002 11%
========= =========
Per-share amounts before accounting changes
Diluted earnings per share $1.59 $1.55 3%
Diluted number of shares 10,445 10,075
Basic earnings per share $1.60 $1.56 3%
Basic number of shares 10,400 10,019
Per-share amounts after accounting changes
Diluted earnings per share $1.59 $1.49 7%
Diluted number of shares 10,445 10,075
Basic earnings per share $1.60 $1.50 7%
Basic number of shares 10,400 10,019
Dividends declared per share $0.82 $0.77
Financial Services
GE (GECS)
------------------------ ------------------------
Years ended
December 31 2004 2003 V% 2004 2003 V%
------------------ --------- --------- ---- --------- --------- ----
Revenues
Sales of goods and
services $82,214 $70,442 $2,840 $2,228
Earnings of GECS
before accounting
changes 8,161 7,754 - -
GECS revenues from
services - - 67,936 62,051
Other income 1,076 645 - -
--------- --------- --------- ---------
Total revenues 91,451 78,841 16% 70,776 64,279 10%
--------- --------- --------- ---------
Costs and expenses
Cost of sales,
operating and
administrative
expenses 71,368 59,273 29,581 24,555
Interest and other
financial charges 979 941 11,372 10,262
Insurance losses and
policyholder and
annuity benefits - - 15,844 16,369
Provision for losses
on financing
receivables - - 3,888 3,752
Minority interest in
net earnings of
consolidated
affiliates 538 181 390 129
--------- --------- --------- ---------
Total costs and
expenses 72,885 60,395 21% 61,075 55,067 11%
--------- --------- --------- ---------
Earnings before
income taxes and
accounting changes 18,566 18,446 9,701 9,212
Provision for income
taxes (1,973) (2,857) (1,540) (1,458)
--------- --------- --------- ---------
Earnings before
accounting changes $16,593 $15,589 6% $8,161 $7,754 5%
Cumulative effect of
accounting changes - (587) - (339)
--------- --------- --------- ---------
Net earnings $16,593 $15,002 11% $8,161 $7,415 10%
========= ========= ========= =========
Dollar amounts and share amounts in millions; per-share amounts in
dollars; unaudited. Supplemental consolidating data are shown for "GE"
and "Financial Services (GECS)." Transactions between GE and GECS have
been eliminated from the "consolidated" columns. See note 1 to the
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.
Summary of Operating Segments (unaudited)
General Electric Company and Consolidated Affiliates
Three Months Ended
December 31 Year Ended December 31
-------------------- ----------------------
(Dollars in millions) 2004 2003 V% 2004 2003 V%
-------------------- ----------------------
Revenues
Advanced Materials $2,322 $1,920 21 $8,290 $7,078 17
Commercial Finance 6,338 5,652 12 23,489 20,813 13
Consumer Finance 4,304 3,541 22 15,734 12,845 22
Consumer & Industrial 3,757 3,457 9 13,767 12,843 7
Energy 5,252 5,708 (8) 17,348 19,082 (9)
Equipment & Other Services 2,490 1,115 F 8,483 4,427 92
Healthcare 4,259 3,320 28 13,456 10,198 32
Infrastructure 952 845 13 3,447 3,078 12
Insurance 6,019 6,210 (3) 23,070 26,194 (12)
NBC Universal 4,341 1,928 F 12,886 6,871 88
Transportation 4,477 3,991 12 15,562 13,515 15
Corporate items and
eliminations (805) (723)(11) (3,169) (2,757)(15)
---------------- ------------------
Consolidated revenues $43,706 $36,964 18 $152,363 $134,187 14
================ ==================
Segment profit (a)
Advanced Materials $247 $201 23 $710 $616 15
Commercial Finance 1,289 1,148 12 4,465 3,910 14
Consumer Finance 637 506 26 2,520 2,161 17
Consumer & Industrial 200 152 32 716 577 24
Energy 922 1,168 (21) 2,845 4,109 (31)
Equipment & Other Services 475 143 F 607 (419) F
Healthcare 860 572 50 2,286 1,701 34
Infrastructure 170 131 30 563 462 22
Insurance (14) 478 U 569 2,102 (73)
NBC Universal 860 536 60 2,558 1,998 28
Transportation 993 815 22 3,213 2,661 21
---------------- ------------------
Total segment profit 6,639 5,850 13 21,052 19,878 6
GE corporate items and
eliminations (324) (253)(28) (1,507) (491) U
GE interest and other
financial charges (336) (236)(42) (979) (941) (4)
GE provision for income
taxes (601) (801) 25 (1,973) (2,857) 31
---------------- ------------------
Earnings before accounting
changes 5,378 4,560 18 16,593 15,589 6
Cumulative effect of
accounting changes - (587)
---------------- ------------------
Consolidated net earnings $5,378 $4,560 18 $16,593 $15,002 11
================ ==================
(a) Segment profit always excludes the effects of principal pension
plans and accounting changes, and may exclude matters such as
charges for restructuring; rationalization and other similar
expenses; in-process research and development and certain other
acquisition-related charges; certain gains/losses from
dispositions; and litigation settlements or other charges,
responsibility for which precedes the current management team.
Segment profit excludes or includes interest and other financial
charges and segment income taxes according to how a particular
segment management is measured - excluded in determining operating
profit for Advanced Materials, Consumer & Industrial, Energy,
Healthcare, Infrastructure, NBC Universal, and Transportation, but
included in determining net earnings for Commercial Finance,
Consumer Finance, Equipment & Other Services, and Insurance.
Condensed Statement of Financial Position
General Electric Company and consolidated affiliates
(Dollars in billions)
Consolidated
----------------------
Assets 12/31/04 12/31/03
---------- -----------
Cash & marketable securities $150.8 $135.0
Receivables 14.2 10.7
Inventories 9.8 8.8
GECS financing receivables - net 282.5 247.9
Plant & equipment - net 63.3 53.4
Investment in GECS - -
Goodwill & intangible assets 83.5 55.0
Other assets 146.2 136.7
-------- -------
Total assets $750.3 $647.5
======== =======
Liabilities and equity
Borrowings $370.9 $329.7
Insurance reserves 140.6 136.3
Other liabilities & minority
interest 128.5 102.3
Shareowners' equity 110.3 79.2
-------- -------
Total liabilities and equity $750.3 $647.5
======== =======
(Dollars in billions)
Financial Services
GE (GECS)
--------------------------------------
Assets 12/31/04 12/31/03 12/31/04 12/31/03
------------------ -------------------
Cash & marketable securities $3.5 $2.0 $147.5 $133.2
Receivables 14.5 11.0 - -
Inventories 9.6 8.6 0.2 0.2
GECS financing receivables - net - - 282.5 247.9
Plant & equipment - net 16.7 14.6 46.6 38.8
Investment in GECS 53.8 45.3 - -
Goodwill & intangible assets 54.7 30.2 28.8 24.8
Other assets 38.2 30.4 112.7 109.6
-------- --------- --------- ---------
Total assets $191.0 $142.1 $618.3 $554.5
======== ========= ========= =========
Liabilities and equity
Borrowings $11.0 $10.9 $361.3 $320.3
Insurance reserves - - 140.9 136.3
Other liabilities & minority
interest 69.7 52.0 62.3 52.6
Shareowners' equity 110.3 79.2 53.8 45.3
-------- --------- --------- ---------
Total liabilities and equity $191.0 $142.1 $618.3 $554.5
======== ========= ========= =========
December 31, 2004 information is unaudited. Supplemental
consolidating data are shown for "GE" and "Financial Services (GECS)."
Transactions between GE and GECS have been eliminated from the
"consolidated" columns. See note 1 to the consolidated financial
statements in the 2003 Annual Report to Shareowners for further
information about consolidation matters.
Financial Measures That Supplement GAAP
----------------------------------------------------------------------
General Electric Company and Consolidated Affiliates
We sometimes refer to data derived from consolidated financial
information but not required by GAAP to be presented in financial
statements. Certain of these data are considered "non-GAAP financial
measures" under SEC regulations. Specifically, we have referred to the
increase in Industrial CFOA in 2004. Reconciliation of this non-GAAP
financial measure to the most directly comparable GAAP financial
measure - cash from operating activities - follows.
(Dollars in millions)
YEAR ENDED DECEMBER 31
----------------------
2004 2003 V%
-------- -------- ---
Cash from GE's operating activities as reported $15,204 $12,925
Less: GECS dividends 3,105 3,435
-----------------
Cash from GE's operating activities excluding
dividends from GECS (Industrial CFOA) $12,099 $9,490 27%
=================
We believe that meaningful analysis of our financial performance
requires an understanding of the factors underlying that performance
and our judgments about the likelihood that particular factors will
repeat. In some cases, short-term patterns and long-term trends may be
obscured by large factors or events. For example, events or trends in
a particular segment may be so significant as to obscure patterns and
trends of our industrial or financial services businesses in total.
For this reason, we believe that investors may find it useful to
compare our cash flow from operating activities for 2004 against 2003
without the impact of GECS dividends, which included proceeds from the
Genworth initial public offering in 2004 and other business
dispositions in 2004 and 2003.
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